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Whitney Baker, Totem Macro – Put Down (The Best Investment Writing Volume 6)

The Meb Faber Show - Better Investing

CHAPTER

The Inflation Pandemic Is a Demand Shock Not a Supply Shock

We have real concerns that rate hikes will be less effective in slowing demand this time around, for a variety of reasons. This overheating is not fueled by a private credit cycle, which is the normal channel by which ray hikes work to slow growth. It's not like its two thousand six and a hiking cycle will pop a credit boom. B fiscal ain't slowing much any time soon, especially in the usa. And we know that the crazy house price booms that have happened almost everywhere are still going to flow through inflation with a leg. A final parting thought, the way tightening can help with an inflation problem is always, and universally, by slowing demand.

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